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Amid news that the White Sox and president Jerry Reinsdorf visited Springfield to request $1 billion in public funds for a new stadium in “The 78,” the team issued a statement in conjunction with their meeting Tuesday. .
“We recognize that discussions about The 78 serving as the future home of the Chicago White Sox have generated much excitement about the potential positive economic impact of the larger project. We are aware and respectful of the legislative process and wanted to travel to Springfield to meet in person with legislative leaders. “We are excited to share our vision and appreciate your time and hospitality.”
Another statement from a related spokesperson from the Midwest followed.
“We appreciate the time legislators in Springfield gave us today. As we shared in meetings, El 78 is a generational development and an investment in our hometown. It’s personal for us and we are excited about the prospect of creating the city’s next great neighborhood, while making a historic economic investment that will bring more than 10,000 construction jobs and 22,000 permanent jobs to our city and state. “The long-term impact will be transformative – creating a new riverfront neighborhood anchored by a state-of-the-art baseball stadium for generations of fans to enjoy and help enhance Chicago’s place as a premier destination.”
According to a recent extensive report by Crain’s business in ChicagoReinsdorf is reportedly confident in his chances of getting state approval for his complex financial plan to meet his goal of building an entirely new Sox stadium, in partnership with real estate firm Related Midwest, along the river Chicago.
“The two (Reinsdorf and related Midwest President Curt Bailey) are optimistic that they can win state support by arguing that stadium subsidies will bring in billions more in private investment, and the deal is structured so that does not require new or increased taxes. the report states.
FURTHER: Jerry Reinsdorf willing to ask for $1 billion in public money for new stadium: report
The responsibility of the plan is to create private investment funds from housing, bars, restaurants, a 4,000-space parking lot and parks around the stadium from the state subsidy to create funds for the state.
The White Sox hope to use a 2% hotel occupancy rate, intended to pay annual debt service for the ISFA (Illinois Sports Facilities Authority, a government entity used to build sports stadiums, including Guaranteed Rate Field in the White Sox) for their bonds toward the White Sox stadium and the Bears’ renovations to Soldier Field in 2003, “for decades beyond, when all currently outstanding bonds must be paid off in 2034.”
The report indicates that the Bears — who are also seeking IFSA help to build a new stadium in Arlington Heights or on Chicago’s lakefront — have not met with the White Sox to create a joint plan . The two teams will fight for the opportunity to collaborate with the IFSA for their respective stadium plans.
The plan includes extending the IFSA bonds for 30 years, while adding a line of income through the aforementioned private investments, which should be enough to cover the initial capital of the stadium, according to the report.
“The new stadium is a very, very important driver for this investment, but it is a small component as a total dollar amount of the project that will change the face of the city of Chicago in many ways,” said a source involved in the meetings. she told Crain.
According to the report, Reinsdorf also wants to use the sales tax generated in the surrounding area not only to subsidize the stadium but also to allow for new IFSA bonds. That sales tax, the report said, would give Reinsdorf the funds needed to build a stadium while also satisfying IFSA’s current debt.
Of the $399 million IFSA funded for the Bears, $384 million is still outstanding.
The extensive and complex plan needs state approval, which will be the most difficult part of the plan. Illinois Governor JB Pritzker, like other state politicians, is hesitant to use public funds for stadiums, as it rarely generates positive dividends for the city or state.
Last week, Pritzker noted that he thought renderings of a possible new Sox stadium were beautiful, but said his administration will soon have official conversations about the plans. The governor noted that the state must “be careful with public money” and wondered aloud what kind of benefit the stadium would bring to the state.
No doubt the IFSA would also need to co-sign the plan as the adjustments to its bonuses are drastic. The plan leaves the guaranteed rate field unaccounted for, so they are obligated to pay.
If passed, it could be a huge turning point in Chicago history.
Check back to this story for more updates.
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